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Then why would it make sense for a country like say China to build up massive (largest ever) hoarse of good? https://tradingeconomics.com/china/gold-reserves ht

Then why would it make sense for a country like say China to build up massive (largest ever) hoarse of good? https://tradingeconomics.com/china/gold-reserves https://tradingeconomics.com/china/gold-reserves

et2o 7y ago
If gold is 50mm a ton (wouldn't be of they had to liquidate that), rounding up, then they have at most 100 billion in Gold. Which sounds like a lot until you realize they have many trillions in USD reserves and debt.
ak39 7y ago
China since 2016 has signed bilateral agreements with several oil-producing nations to receive payments in yuan backed by gold. This bypasses the need for the "petrodollar". This is the most likely reason for China's recent insatiable demand for gold.
- vishnugupta 7y ago
  My "naive" theory for China to do this is that it's working towards making Yuan an alternate currency for countries to peg their currencies to.
navigatesol 7y ago
>Then why would it make sense for a country like say China to build up massive (largest ever) hoarse of good? Why would it make sense for the people/countries that China is buying gold from to sell it, if it's "real money"?